- Theresa May lost her first Commons vote as Prime Minister as MPs backed an amendment to the EU withdrawal bill which means MPs now have a legal guarantee of a vote on the final Brexit deal struck with the EU.
- Conservative rebels tipped the vote in favour of the amendment and one, Stephen Hammond who was party vice chairman, was sacked in the aftermath.
- As expected, the Federal Reserve raised rates in the US by 25 basis points to <1.5% last night. The FOMC announced that its overall outlook for the US economy is positive with three rate hikes expected in 2018.
- Sterling gained ground on the US dollar yesterday by 0.75% after opening at 1.3317 and closing at 1.3417.
- GBP/EUR opened at 1.1337 and traded a high of 1.1385 before closing at 1.1343.
- US CPI m/m came in as expected at 0.4% and core CPI came in slightly weaker at 0.1% vs 0.2% expected.
- Australian employment change surpassed expectations coming in at 61.6K vs 18.1K and the unemployment rate came in as expected at 5.4%.
- Chinese industrial production y/y and fixed asset investment ytd/y both came in as expected at 6.1% and 7.2%, respectively.
- Theresa May travels to Brussels to urge the 27 EU leaders to approve an agreement to move Brexit talks on to the second phase.
- UK retail sales m/m came in better than expected at 1.1% vs 0.4% expected. Sterling has gained value against the other majors off the back of this.
- We hear from the Bank of England at midday. The interest rate is expected to remain at 0.5% and the MPC votes are expected to be all in favour of no change.
- The ECB rate is expected at 12:45 and is expected to remain unchanged.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|12:00||GBP||MPC Bank Rate Votes||9-0||9-0|
|12:00||GBP||Monetary Policy Summary|
|12:00||GBP||Official Bank Rate||0.50%||0.50%|
|12:45||EUR||Minimum Bid Rate||0.00%||0.00%|
|13:30||EUR||ECB Press Conference|
|13:30||USD||Core Retail Sales m/m||0.6%||0.1%|
|13:30||USD||Retail Sales m/m||0.3%||0.2%|